May 30, 2022
How to Choose an Effective Contract Repository System
Table of Contents:
- What is a Contract Repository system?
- Why Have a Contract Repository System?
- 6 Features of Effective Contract Repository System
- Key takeaways
What is a contract repository system?
A contract repository system is a single place where you store contracts. In that sense, a contract repository is a centralized repository offering you seamless access to relevant documents.
As such, effective contract repository systems are the foundational structure of business decision-making and relationships.
The goal of any effective contract management database is to ensure visibility and provide access anytime-anywhere.
Contract creating, contract negotiating, and managing contracts is an essential part of every business, regardless of the size. Nevertheless, every step is time-consuming and prone to standard data entry errors.
Running a business involves many moving pieces, so companies must simplify as many processes as possible to ensure maximum efficiency. Fortunately, some solutions facilitate the streamlining of contract management, and establishing a contract repository is the first step in achieving that goal.
Why Have a Contract Repository System?
Effective contract management requires awareness of key dates. Key dates include renewals, an in-depth understanding of your obligations, and certainty around compliance across your business and third-party businesses.
Compliance, risk, and profits: these are three things that the use of an effective contract database can achieve. By systemizing and centralizing all your contracts from beginning to end, you can optimize your dealings and your business relationships.
Everybody needs to take care of their customers and dealings effectively, from small to big businesses. Studies have found that Global 1000 corporations have between 20,000 to 40,000 active contracts at any given time. By using the right contract management repository, the maintenance of these clients can be simplified.
6 Features of Effective Contract Repository System
A vast array of potential features can separate the good and the great contract repository systems. There are key features you must consider whether you need to manage hundreds or thousands of contracts. These include:
The first step of any contract is to create it. A great contract repository system allows you to customize for your needs and help to reduce contract assembly time. Be sure to check that your software can handle documents exported from multiple different file formats - like PDFs and Word.
During the negotiation and execution stage, you need to ensure that your workflow has the correct approval, alerts, and notifications to involve the correct people at the appropriate times. Ensure that the system is easy to use and flexible to your possible needs.
While it is important to have a standardized way of looking after the data, it is also key to have modeling technology that understands the different structures, processes, and requirements of each contract.
Through a report manager and personal dashboard, you should be able to see reporting and analytics. That way you can check for reports on commitments anytime you need them.
You will need a system to alert you on key dates within a contract. This can be anything from service dates to delivery dates and any expiration or renewal dates.
6. Renewal or Expiration
The date of contract renewal will be identified ahead of time so that you can decide the fate of it, and your software should include this.
In plain terms, your contract repository system should help you from endorsement through to finalization or renewal. So, endorsement - creation - storage - management - examination - negotiation - payment services should all be covered, along with other features to make a package stand out from the crowd.
The use of all these features will help you manage contracts quickly and effectively while also helping you design new implementation strategies to optimize any future business. To be able to track what worked and what did not is vital for expansion, knowledge, and profit.
Get access to all of these insights with a contract automation system.